For exchange offices

Rules and procedures for using WebMoney Transfer
for exchange operations using financial instruments

Last Modified: February 14, 2018

The given document is created in accordance to
WebMoney Transfer Code, «Agreement on Property Rights Transfer» and Anti-Money
Laundering Agreement. It establishes rules and procedures for performing
exchange operations with any third-party accounting or payment systems,
including cash and bank exchanges (wires to/from bank accounts) as well as
requirements for opening and ceasing exchange operations by WebMoney Transfer
users.

1.2. Exchange operations involving cash funds in local or foreign currency
from personal funds in your own name carried out as a business activity (that
is on commercial basis) can be performed only by users, who have undergone an
identity check and obtained so called Merchant Passport. Users offering
exchange services as business activity should apply for a Merchant Passport by
registering at Exchange Services category of the Megastock Catalogue.

1.3. Exchange Services have no right to attract funds for their exchange
operations from other third party sources, that including public calls,
advertising, borrowing, trading and other means on conditions of urgency,
chargeability and recurrence, as such funds cannot be used for arranging an
exchange.

1.4. It is prohibited for an Exchange Service to:

attract title units and financial means from third parties on conditions of
urgency, chargeability and recurrence;

receive title units and financial means as an advance payment based on
exchange rate agreed earlier than 12 hours before the exchange operation;

offer any other operations other than exchange;

perform exchange operations for the unidentified or third parties;

Perform exchange operations without accompanying the transaction with
appropriate payment reference/comment, describing the source/reason/addressee
(recipient) of the exchange.

1.5. For activities, breaching the terms of the given document, the User is
hereby subject to the liabilities, stipulated by WebMoney Transfer Code of
Conduct, namely:

performing commercial exchange operations without registering as a Merchant
at the Exchange Services category of the Megastock Catalogue leads to temporary
account (WMID) suspension of the Exchange Service and any other users, involved
in its activity/functioning until full elimination of the rules' breach and
compensation to the affected party upon a WebMoney Arbitration decision;

performing commercial exchange operations for the unidentified or third
party and violating the payment reference (comment) field requirement leads to
temporary account (WMID) suspension of the Exchange Service and any other
users, involved in its activity/functioning until full elimination of the
rules' breach and compensation to the affected party upon a WebMoney
Arbitration decision;

bringing in (attracting), public trading or borrowing of funds from any
external financial means or instruments for performing a commercial exchange
operation on conditions of urgency, chargeability and recurrence leads to
temporary account (WMID) suspension of the Exchange Service and any other
users, involved in its activity/functioning until full elimination of the
rules' breach and compensation to the affected party upon a WebMoney
Arbitration decision.

2. Starting exchange business by WebMoney users

2.1. WebMoney Transfer users have a right to offer exchange services to
other users of WebMoney Transfer system and to buy, sell or exchange
third-party financial instruments in strict compliance with these Rules.

2.3. WebMoney Transfer users are obliged to submit their exchange websites
to the MegaStock catalogue (Exchange Services category) to be able to exchange
WebMoney units to third-party financial instruments.

2.4. When submitting their exchange websites to MegaStock, WebMoney users
shall provide the following information:

request to add the website to the Exchange Services category submitted via
the MegaStock registration interface;

description of currencies and exchange direction;

description of sources and API of third-party financial instruments offered
for exchange;

exchangers performing transactions with cash must provide an electronic
copy of original or legally certified copies of the following documents: lease
contract or state title registration certificate for occupied premises (or
another document confirming the right of property for occupied premises)

Pursuant to the WebMoney Code, users are personally liable for the accuracy
and validity of the information and documents provided.

2.5. If the information provided is not complete or not in compliance with
the Rules, the registration request will be denied by the MegaStock
administration. The reason for the denial will be provided.

2.6. The decision of approval or denial shall be made within 20 days after
the registration request was submitted.

2.7. Should the exchange service provider go out of business, he is obliged
to notify the MegaStock administration at least three days in advance in order
to remove the exchange website from the catalogue.

2.8. Users must notify the MegaStock administration in writing within three
days if any of the following changes occur: business address, URL, list of
rendered services.
If the replacement in exchange business owners occurs (and another Merchant
Passport is used), the WebMoney user has to submit the exchange website to the
MegaStock catalogue anew in compliance with these Rules.

2.9. WebMoney user has the right to open several exchange services per one
WMID. When a new exchange service is opened, the user is obliged to submit it
to MegaStock and link it to new WM purses of the same WMID.

3. Terms and conditions for exchange service businesses

3.1. Exchange service is obliged to publish the following information on its
website. The information must be easy-to-find and understandable.

business name of a legal entity or name of an individual — the owner of the
exchange service;

opening hours;

MegaStock registration number and logo provided during the registration
with MegaStock;

information for customers and service procedure;

exchange services selling and buying WebMoney units online or offline must
obligatory publish the Risks Acknowledgement on their websites (part and parcel
of the Agreement on Property Rights Transfer by Means Of Digital Units, Annex
III).

3.2. Exchange websites must contain accurate, valid and unambiguous
information regarding exchange rate and terms. All exchange transactions should
be conducted as per published exchange rates and terms. Websites should contain
the description of exact steps customers should take to complete the
exchange.

3.3. Exchange services are obliged to obtain a permission to start an
exchange business by sending a preliminary request to API provided by the
System. Such a request should transmit prospective details of the transaction
party. The details are fixed by
X19
interface.

3.4. Exchange providers must store and provide immediately upon request of
the WebMoney Transfer Arbitration Service the following information on title
units exchange transactions:

Exchange transactions of title units to live currency (both cash-in and
cash-out) — passport details of exchange participants, including electronic
copies of their identification documents;

wire transfers — full details of the bank transfer on each exchange
transaction;

transfer of funds via money transfer systems which do not require opening
an account (Western Union, MoneyGram, etc.) – full transfer details on each
exchange transaction;

Transfer of funds for bank card replenishment via various acquiring or
billing systems without using a bank transfer – full details of a bank card and
its owner (the full name of a card owner, the bank name, the card type, the
card number and other card details).

Exchange providers must comply with the format of the WM-notes, providing the
required information on title units exchange transactions, namely:

Exchange transactions of title units to live currency — a passport number
and a full name;

Wire transfers – the full name of the receiver (Sender or Receiver of the
payment, the bank branch name and location or the Bank Identifier Code, the
account number either of the payment Sender or Receiver;

Transfer of funds for bank cards replenishment via various acquiring or
billing systems without using a bank transfer – the payment information (a full
name, a card number, a bank name);

Exchange of title units to means of various electronic payment systems or
online payment systems – the receiver details (the name of the system, an
account or e-wallet number, the exchange type and amount). In this case, an
exchange provider must verify the account details of the account within an
external system, provided by the WebMoney Passport owner participating in the
exchange by conducting preliminary inquiries via interfaces provided by the
System.

3.5. In order to prevent and combat illicit trade, financial fraud, money
laundering and legalisation of funds obtained by illegal means WM-exchange
providers shall not permit exchanges or advertise in any way websites and
resources, commencing exchange of financial or other payment instruments, the
accounting system of which does not ensure proper verification of the owner
identity. The ban on advertising also includes:

Support by any means of websites, modified copies of their own resources or
similar domains, which may be misleading to system users regarding the
integrity of operations;

Publications of links to the above-mentioned websites on their
resources.

The list of the systems banned from participating in exchange operations is
provided, but not limited to, in Annex 1.

3.6. Exchange Services can use
X2 interface
for their exchange operations only using onlyauth=1 parameter (that is to
transfer funds only to the pending recipient). This measure is designed to
avoid erroneous transfers from the Exchanger's purse). For example, if a user
has indicated wrong purse number, belonging not to him but to a shop that
accepts funds only via merchant interfaces and who prohibits any direct
payments via x2, funds will not leave the Exchanger's purse.

3.7. Exchange services should control purposes of incoming and outgoing
payments in accordance with the rules provided in the preceding clauses. Means
of control depend on the used technology:

when X1, X2 interfaces are used, an exchange services composes a notice,
and third parties can not change it;

when the merchant.webmoney.com interface is used, parameter
LMI_PAYMENT_DESC is transmitted together with the preliminary request and with
the request for payment notification. A customer can check both before and
after the payment (via Result URL) whether there were any changes made after
the payment form had been issued and till the moment of payment.

3.8. Anyway, regardless of the method you accept or make payments, the
purpose of payment can be controlled in the following ways: Automated method -
via X3
interface, Manual method - via reports on the history of transactions
(report.wmtransfer.com) send to your WM Keeper. Special attention should be
given to the significant payment details. E.g. if the payment is processed in a
Russian mould for "Петрова Елена Николаевна", no other languages moulds can be
used. If the payment is made into a settlement account or a card or into a
personal account with third parties, and these details only contain numbers,
only numbers should be used in the payment reference (comment field) as well.
Significant payment details should be 100% identical to those received or
transferred to third parties.

3.9. When adding funds into the System (when selling WM currency to the
customers) via exchange options, listed in clause 3.4 of the given document the
Exchange Service is allowed not to collect and store data in cases, when
exchange limit doesn't exceed an equivalent of USD 2000 per 24 hours per one
WMID.

3.10. Exchange services, regardless of their location, should independently
and at own discretion register with local tax authorities, keep tax reporting
and apply for a license or a special permit if required.

3.11. This item contains information on how Exchange services should use
financial and payment instruments that do not ensure proper KYC procedures and
customers identification and that "store" the instrument value directly on
their own unique anonymous (alias) details. Here is the list of such
instruments: instruments derived from
WebMoney-currencies
-
Paymer
checks,
WM-cards,
WM notes
(hereinafter referred to as the prepaid instruments of the first group),
instruments of the third parties uKash, Paysafecard, cashU or virtual
unidentified (anonymous) bank cards, prepaid cards (that can be used for the
payment to any third party or for cash withdrawal, by non-cash way through the
issuer or its agents), etc. (hereinafter referred to as the prepaid instruments
of the second group).

It is forbidden to sell or to buy the prepaid instruments of the first
group from the third parties for WM-currencies. Such transaction does not make
any economical sense, as users of the System can always issue or settle such
instruments themselves, or use them for payment via
WebMoney.Merchant.

It is forbidden to sell to the third parties the prepaid instruments of the
second group for WM-currencies (to withdraw WM-currencies by exchanging them
for the prepaid instruments of the second group) unless the approval from the
Abitrage has been received. The System users can purchase similar instruments
for WM-currencies on the website Plati.ru
(that have agreed the procedure and terms of sale of such instruments for
WM-currencies with the System) and directly via the different System services,
e.g.
top-up.wmtransfer.com.

It is allowed to buy the prepaid instruments of the second group from the
third parties for WM-currencies (the exchange of the prepaid instruments of the
second group for WM-currencies), funds can be added to the System on the same
terms as when adding cash to the System.

It is allowed to sell to the third parties the prepaid instruments of the
first group for cash, bank transfer or other payment or financial instruments
(except those listed as prohibited in the Appendix 1) only if the terms of sale
are negotiated with the corresponding
guarantor
WM-currencies or with the instrument issuer. If required by the guarantor the
agreement should be concluded and points of sale should be posted on
Geo.WebMoney and all
other requirements of the guarantor should be met in order to protect the
System users.

It is allowed to buy the prepaid instruments of the first group from the
third parties for cash on the same terms as when buying WM-currencies for cash
from the third parties. This means that the seller should attend the place of
purchase, and provide the identifying document, and the buyer should make a
copy of such document. Due to the fact that the prepaid instruments of the
first group do not ensure proper KYC procedures and customers identification,
the purchase of such instruments is only possible in the presence of the third
party, and on condition that the identifying documents of the third party
coincide with the details of the prepaid instrume.

4. Refusal to verify (register) an Exchange Service with
WebMoney

4.1. An Exchange Service will be refused a registration if:

applicant provides inaccurate information;

applicant doesn't provide information required by the present document.
Once information is provided the application will be reconsidered on common
basis;

applicant carries out activities forbidden by the Terms Of Use of the
System;

there are open claims against Applicant with WebMoney Arbitration.

Refusal to register an Exchange Service will be provided in writing by
MegaStock Administrator.

Refusal to register an Exchange office can be disputed by WebMoney
Arbitration.

5. Recall of the Exchange Service registration

5.1. An Exchange Service can be removed from the MegaStock catalogue on the
following basis:

a written statement from the applicant on the termination of exchange
operations;

change of the URL or postal address.

6. Termination of registration

6.1. MegaStock Administrator can terminate registration in case of:

applicant doesn't follow WebMoney Code and the present Rules;

infringement of the exchange procedures;

Exchange Service carries out activity different from the declared exchange
activity;

transfer of control to the third parties;

infringements of terms and order of functioning of exchange service;

delayed submission or failure to submit accounting information on
operations with the third parties;

legal decision prohibiting Applicant from exchange business;

detection of inaccurate information in the payment details or detection of
inaccurate information in transaction recording;

failure to meet requirements of the Administrator or Arbitration, or
repeated infringements on which preventive measures have been taken;

no exchange activity within three successive months;

address of the exchange office is different from the address provided
during registration;

confirmation of the facts stated in complaints and claims of participants
of the System.

Annex 1

List of the Systems/financial instruments prohibited for exchange operations
in any direction:

AlertPay (alertpay.com)/Payza (www.payza.com)

AdvCash (advcash.com)

Crypto currencies and tokens, except the ones for which the corresponding purses exist in WebMoney Transfer System and with that the exchange provider performed sure identification of both parties taking part in the exchange process by means of program interfaces of the WebMoney Transfer System.